20 March 2020

North Carolina governor orders business to shut down, affected workers eligible for UI benefits, employers not charged for benefits

On March 17, 2020, North Carolina Governor Cooper ordered bars and restaurants to shut down on-site consumption of food and beverages as a result of the continued spread of COVID-19 in the state through March 31, 2020. The governor had previously declared a state of emergency in response to COVID-19. (Executive orders no. 116 and 118.)

The order instructs the North Carolina Department of Commerce, Division of Employment Security to apply the flexibility allowed by the US Department of Labor to permit workers affected by the shutdown to collect unemployment insurance (UI) benefits, waiving the one-week waiting period for benefits and the work-search requirements of the state UI law. The Division is also instructed to not charge employer UI accounts for the UI benefits collected due to the shutdown.

The Division's website confirms that UI benefit charges that are the result of COVID-19 will not be allocated to employers' UI accounts. Employers responding to requests for separation information should indicate that the separation was due to COVID-19.

For workers facing job loss due to COVID-19, the order specifically addresses:

  • Individuals who are separated from employment
  • Individuals who have had their work hours reduced
  • Individuals who are prevented from working due to a medical condition or under direct quarantine orders due to COVID-19

According to the Department, workers filing for UI benefits who have been quarantined due to COVID-19 will be considered able and available to work, provided they have not removed themselves from the labor market. If workers are unemployed due to COVID-19, they do not have to conduct a work search while filing for UI benefits.

Workers should file UI benefit claims online, or if they have no access to a computer, by calling +1 888 737 0259.

For the Division's COVID-19 information as released, go here.

For the state's COVID-19 information, go here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2020-0637